This Small Business Innovation Research Phase II project aims to investigate the use of developing new biological systems employing common marker gene expression in transformed cells to control the growth and character of cells in living tissue. Building on our successes in the Phase I effort, the proposed research will provide breakthroughs needed to advance new promising medical uses of recombinant genes. In Phase I, Marker Gene Technologies, Inc. established the feasibility of this technology by preparing new galactoside and Cephalosporin conjugates of common growth regulators, drugs and enzyme inhibitors, for administration to animal cells or bacteria that contain either the beta- galactosidase (lac Z) or ampicillin resistance (beta-lactamase, amp) genes as gene fusion markers. These new conjugates utilized these fusion systems in transformed cells to affect drug delivery and control selected biological properties. In Phase II, the new biological systems will be implemented in vivo for their ability to cause specific and localized effects on cell growth and to deliver activated drugs in a cell- or tissue-specific manner. In particular, the conjugates will be further tested in the significant medical areas of gene and immuno-therapy for cancer and proliferative diseases treatment. PROPOSED COMMERCIAL APPLICATION: The success of this project opens up enormous commercial possibilities in the fields of medical intervention in genetic diseases, gene and immuno- therapy for cancer treatment, biotechnological production of new proteins and drugs in cell-culture systems, and bacterial screening strategies. In addition, it contributes new information and techniques for basic cell-biology research.